Under the terms of the agreement, the purchase price for the acquisition of both companies is $50 million, subject to an adjustment based on the net working capital of the acquired companies as of the closing date. HWCC expects to finance the payment of the purchase price through borrowings under its existing credit facility. The acquisition is subject to customary closing conditions, and is anticipated to close before the end of the second quarter of 2010.
Chuck Sorrentino, President and CEO of HWCC, commented, "We are extremely pleased to expand our business with the addition of these two great organizations. Both Southwest Wire Rope and Southern Wire are well managed and have great support teams. We feel their respective businesses are an excellent fit for our long term growth initiatives. The combined companies will serve complimentary end markets which require the goods and services of all three companies. I am very excited about the opportunity that this acquisition brings to HWCC."